THFF Collar Strategy
THFF (First Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
First Financial Corporation operates as the bank holding company for First Financial Bank N.A. that provides various financial services for individuals and businesses in west-central Indiana, east-central Illinois, western Kentucky, central and eastern Tennessee, and northern Georgia in the United States. The company offers non-interest-bearing demand, interest-bearing demand, savings, time, and other time deposits; checking and savings accounts; personal and business certificates of deposit; and digital banking services. It also provides commercial loans primarily to expand a business or finance asset purchases; real estate mortgages, including residential real estate and residential real estate construction loans; home equity loans and lines, secured loans, cash/CD secured loans, and unsecured loans; mortgage refinance; personal and auto loans; and credit cards. In addition, the company offers lease financing, trust account, and depositor services; business services, including accounts receivable and payable, merchant services, fraud protection, money management, and workplace rewards; and wealth services. The company was formerly known as Terre Haute First Corporation and changed its name to First Financial Corporation in December 1984. First Financial Corporation was founded in 1834 and is headquartered in Terre Haute, Indiana.
THFF (First Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $923.5M, a trailing P/E of 11.45, a beta of 0.43 versus the broader market, a 52-week range of 51.21-78.36, average daily share volume of 96K, a public-listing history dating back to 1992, approximately 946 full-time employees. These structural characteristics shape how THFF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.43 indicates THFF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.45 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. THFF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on THFF?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current THFF snapshot
As of June 30, 2026, spot at $77.31, ATM IV 58.70%, IV rank 16.67%, expected move 16.83%. The collar on THFF below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this collar structure on THFF specifically: IV regime affects collar pricing on both sides; compressed THFF IV at 58.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.83% (roughly $13.01 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated THFF expiries trade a higher absolute premium for lower per-day decay. Position sizing on THFF should anchor to the underlying notional of $77.31 per share and to the trader's directional view on THFF stock.
THFF collar setup
The THFF collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With THFF near $77.31, the first option leg uses a $81.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed THFF chain at a 17-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 THFF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $77.31 | long |
| Sell 1 | Call | $81.18 | N/A |
| Buy 1 | Put | $73.44 | N/A |
THFF collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
THFF collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on THFF. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use collar on THFF
Collars on THFF hedge an existing long THFF stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
THFF thesis for this collar
The market-implied 1-standard-deviation range for THFF extends from approximately $64.30 on the downside to $90.32 on the upside. A THFF collar hedges an existing long THFF position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current THFF IV rank near 16.67% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on THFF at 58.70%. As a Financial Services name, THFF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to THFF-specific events.
THFF collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. THFF positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move THFF alongside the broader basket even when THFF-specific fundamentals are unchanged. Always rebuild the position from current THFF chain quotes before placing a trade.
Frequently asked questions
- What is a collar on THFF?
- A collar on THFF is the collar strategy applied to THFF (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With THFF stock trading near $77.31, the strikes shown on this page are snapped to the nearest listed THFF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are THFF collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the THFF collar priced from the end-of-day chain at a 30-day expiry (ATM IV 58.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a THFF collar?
- The breakeven for the THFF collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current THFF market-implied 1-standard-deviation expected move is approximately 16.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on THFF?
- Collars on THFF hedge an existing long THFF stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current THFF implied volatility affect this collar?
- THFF ATM IV is at 58.70% with IV rank near 16.67%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.